what is interest rate on unpaid taxes

Oct 14, 2009 1 Replies

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removeps-groups 16 years ago

Where on the IRS website can I find what is the interest rate on unpaid taxes. I imagine this will be the interest rate charged during an installment agreement, or if you just didn't pay your tax on time; is that so?

Best I could find after a google search is a revenue ruling.

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6621.--Determination of Rate of Interest

From the last line in page 7 it looks to be 5% for Jan. 1, 2009--Mar.

31, 2009. Is that true? What about now?

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Phil Marti 16 years ago

Search on "underpayment interest."

The rate adjusts quarterly and is 4% through the end of 2009.

Add to that failure to pay penalty, which is 6% until:

You ignore things until IRS issues a formal notice of intent to levy, at which time the rate goes to 12%; or
You enter into an installment agreement, at which time the rate goes to 3%.

Phil Marti Clarksburg, MD

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